Tesla (TSLA) 30 Jan 202019 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to Tesla's Q4 2019 Financial Results and Q&A Webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

to conference like speaker, to now Mr. would hand over the your I Director Investor Viecha, of Martin Senior Relations. ahead, go Please sir.

I'm Elon Thank you, number fourth webcast. Tesla's and of welcome today Sherry and good quarter afternoon other executives. XXXX and Zachary Kirkhorn Mus, everyone to joined a by Q&A

Our were this as webcast. about announced X:XX in Pacific Time link QX update the deck same results the we at PM published at

business predictions outlook are During expectations and and forward-looking number in the discuss recent with mentioned call, Actual comments our we of our those statements. could due filings today. based of the our on results differ and will as These risks or to SEC. including most make events uncertainties, materially a

yourself before one [Operator opening to one During jump portion we remarks. the Elon question-and-answer question Instructions] Elon? follow-up. limit of has But the please today's Q&A, in some and call,

Thanks, Martin.

to vehicles revenue product So over single can advertising quarter. QX for that in demand than Deliveries company. generate hard spend. was zero of strong it another more XXX,XXX $XX a in such the strong think billion a with reached quarter It's with similar

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expect cheap to Fremont, we in go XXXX so production of the of factory a to This significantly producing factory as same Model number. out the and to its produce before beyond we're was this that year did Y of Fremont year. record our lot started that roughly exceed there's rate of potential even the at obviously we At NUMMI rate

about quarter Shanghai say X factory. on Shanghai the the in really deliveries earlier again team the the optimistic last factory and launching first For congratulations achieving this Shanghai I'm to potential Model I'd the and for year. like to excited

asset progress we I factory broke good incredible on be think it's there. ground going the Model to so the also of Y company in lot to Shanghai, and

it prototype. was a now this that year, in Regarding ago already. started we Y volumes Model revealed XX Model only in months And Y, we producing Model Y limited January

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every way For a ago tried preconceptions revealed was is product -a should superior went product such look. without the that revealed how and we any Cybertruck, that product we in a months and viral the Cybertruck, that to we obviously -- that build of few

have that goal. So standpoint truck, it armored futuristic, wanted And future ass basically. the out something -- the of most basically anything we've the actually and this incredible. came has really seen demand at carrier movie such that it a to the sci-fi just the personnel never never any just of like level I it demand what's that's from of been this the seen of like look kicks badass, pickup the set from we

sell for many as years. many will we think as I about can make as we

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information to the realize people think just is have awesomeness enough it, product great. the of even, don't So, realize actually than just better and even I it's they

and So building in parts in flow, to flow but time and we we standpoint, of while was in Shanghai in generate production. free Model managed building cash financial a back factory record XXXX breakeven, cash a billion XXXX while free were in from more then stepping than $X Y

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front control this thank conclusion us what same I'd the of exciting bunch next-gen couple of company Roadster in what very allowed some probably financial and we'll growing in pace. team get [indiscernible] like got time when of years, the to and I while Tesla has whole got we cost we've we in have incredible technology too. Y, numbers, the Semi, the to in next at a work we've improvements compelling Solarglass the to other Model of Tesla self-driving, is And think Berlin, on for ongoing the Giga full an got their for Roof, Cybertruck at products us, battery

another exciting product It's and roadmap. that hard has to technology more think company of

up super-fired about the So next Tesla years. where XX in be will

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So where very be we excited the years, will prospect. to in consider XX

and Zachary well. Thank remarks as much opening some Elon you very

key the a XXXX was I of This past has reservation like demand. making a mentioned transitioned a orders and I'd again, from and course worth for everyone year thank year generating highlighting transformational Yes. who been we've to Thanks, entirely from over it's Martin. few highlight. new happen. Model of generating Tesla once X to a times, few the backlog On part points want we've while truly organic demand, to this On

in launch Reno. ASPs With seen to respect of we've S greatly also we've in and even and increasing increase learned from and of Fremont Model and launch versions slightly QX an stabilization Model X the a We've expansion, X capacity of ASPs the development longer-range the after in QX. X in seen of

new strong operational we've QX evidenced many strong and able of able production Shanghai, we capital volumes, product Y progress net cash that enabled to been And the bring the in faster higher less were and both as enabled working generation. launched multiple programs board achieve reasons and with same costs. to have result, our we income positive This continued quarters year. as in on in Fremont, by efficiency, for to to X a on generation, both well were improvements management As Model and in QX capital GAAP demonstrated of launch Model is improvement Financially, of cash cost. one in that capacity under

revenue implementation We've of of with also premium upgrades the for via purchase app. beginning recurring progress and software-based connectivity made mobile on the available the and Tesla

sequentially almost our related stock-based entirely expense the by by stock tranche compensation, the increased company, the improved, CEO This performance to. $XX an on of expected tied grant. grant it million of next result to CEO a financial of which the driven Finally is is

year this the As again we look ahead company. to will for be an XXXX, important

of on ahead to to task that support execute cash managing flows Our the growth, next phase while growth. is

subsequent in deliveries limited over we quantities ramp later and On Model expect Y, quarters. this will quarter first

higher are we margins previously, Y forecasting Model mentioned the to compared on Model gross As X.

rates. X, production and Model the expect This year run to rate we achieve delivery for built Shanghai

plant chain the site. we at the or factory majority In region. have one the expect components addition, of most This to supply localization costs the important of lower the achieve completed production is in to for

remain X rates seeing We the order strong managing and and ramp production Model for are focused locally-built continuing the also on costs.

of increase construction growing of result Shanghai progress We year and in increases the the factory course spending. which pipeline also operating anticipate an expect to Model On significant I Y, support Berlin expenses over our in footprint. and built the international on product capital continued will

believe However, to revenue. strengthening OpEx further than performance at related forecasted investments a will to us our cash increase of line with sheet. for financial our should growth up we strongest rate lower flows annual this set top and yet, support balance sufficient a growth Overall,

seasonality. that always please QX, the is industry keep in impacted For mind by

temporarily ramping process and products Y two Model in in the will are X Fremont, on margins. we in Additionally, expect weigh major Model which I of Shanghai our

to in temporarily impacted of the and the we are Coronavirus. extent may early by stages be We understanding if also what

point, shutdown. X This factory to of X.X ramp X built as the delay government the a in profitability from early slightly a profit Model stages. expecting Shanghai the this in impact required week to may for the we're Model Shanghai remains is At contribution X limited but due quarter,

interruptions monitoring closely will also chain for are whether be built in the in Fremont. cars there We supply

aware we're but not anything that story. of caveat is evolving So to this it's important material, an far

strengthening further continue we expansion sheet. have than cash while However, to our more the balance sufficient plans,

questions. again will for support we your to you turn and Thank

you. Thank

question take to retail Technologies. SAY [ph] going are We compiled the first investors from by

have is investor Solarglass So question for in homebuilders of substantial home installations in Solarglass required all do of share. solar the new first for you any Roof What's can orders constructions that Roofs the any California from the large retail target XXXX you the for number since is California, California?

are we a for from in exponential [indiscernible] I Roof. our think Well, we do seeing, growth base, demand -- output small Solarglass and

America to [ph], year general, [ph] just new be also and will not in roofing million through are on except order but and X strong a through through industry Tesla it's So this what is also the the is per that North new in [source] we very predict year. just hard] that [real whether working homebuilders demand of roofs the

want a see to people expect a and a be do future roof looks dead time want. getting - is long I be lots the solar of form the so time interest I in installation trained that without. roofs generates want something lot and of that significant just and it's question percentage do And crews of it power good your will it's But to and glass process, or going a we power So, choice, new would really to one another. lasts It's the think over installation. refining you or roof alive use a with we to live of

quite challenges there factory significant doing will Buffalo be and overcome, And for to it a and but will overcome lot that the because new revolutionary is is a they this product a great. Tesla. but So of is a line be product will major product it be and

you. Thank

change also allow the happen? full [indiscernible] Insurance so want to and of airport shareholders question first, Second the when to target terms If Tesla app from the Might add on to California network. is, will before be place will owners you retail to good drivers Tesla autonomy release this network Superchargers.

sounds like question one? then more it Sorry,

yes. Yes, a a of bundle, bit it's

Well, kind car the because of sharing to have is regulators. car sharing self-driving it probably – before of enable it's advance be robo-taxi sort can I in approved make full by fleet to drive like think will the sense of done

enable would is enabled. some there of sort other we that were before there? So, robo-taxi bundled something sounded it's like probably questions And, in it fleet

Superchargers at airports.

the Sure. Yes, superchargers in have probably airports. we'll

need have wherever there we is We supercharges for a see that supercharges.

intent It's the allow the intent but case, put into Tesla or insurance not to it by then ride to question, part our that on And is is that the ready. their the of people cars available, the FSD using it's network our sharing currently to Insurance. this get time

you. you the question Yes, percent? lower significantly coverage? currently data for start of discount investors the Insurance cost the from Tesla XXXX? have are leverage owners to When fleet certain we The the from Will get to of Tesla target What's -- next insured premium will California your in thank Insurance? retail is with you many significant how

Yes, I ahead Zach. mean go

using Insurance things preparing the the regulatory our first the through Tesla are expand on in working is A processes, as in available rolled reduce be this locations we're a continue processes of go getting will to our processes heavily our the to before working in is right it time front, exactly to on have the in processes now. here Yes, other significant where that's question also California, preparing rates to regulatory in which to so go this to we intent Insurance amount our Tesla There through to insurance time. this innovation those as technology we're adjust And we've focusing is quite We're discussed regulated. of currently what And couple the is also locations. that to regulatory rates. space, spending and is processes California. over on of

will for a of the cars? was, using last be part Autopilot there our The discount with question

will Yes, be. there

California for the safety considers card Insurance Autopilot. rate already with associated The features Tesla

make as would on I the think to think but of us higher Right, -- it use close I probability Autopilot, well the the of sense reduces insurance for as injury. loop costs

The amount a is quite of month, you big for month is percentage of can and typical Tesla car, a over I $XXX on think money that So between a Model I California insurance now a think owner $XXX spend paying of the insurance X to car major be going time. will product remarkably right like $XXX a insurance. of a in somewhere lease a be like cost a in people but

real don't whereas which no the it's a that the of being in a It's terms maybe good talking way in is insurance to insurance. don't versus information quarter cost time. of where car because fundamental the insurance the insurance the lease insurance companies that that of there of companies driven, two poor good a can car mechanism the is just is about have actual rates that advantage is and something we're So lot half way a drivers cost or have. provide information feedback of about feedback the And that is the very do we

is, The older XXXX. the to on you. you we where provide be on you computer please you the see FSD that with models? retrofitting update question of you an set in end feature are end would FSD expectations next users, complete when this Thank Can by will

last let's to said means to in it's The going complete feature hoping few like of no like I chance feature be debentures. I would complete with year. precise, a of might home with it both we the feature your by close, mean, be be some just Well, pretty FSD complete looking We has I months. say work from got was end

mean working well, zero has are the above it does features but that's it it -- means So, chance.

maybe has autopilots autonomy. how been months for obvious just the of it's full is isn't advantage in AI core progress. Autopilot I strong to -- into of in think is think very, like And now. the foundational Autopilot much The and we're going that's making couple hardware going Autopilot take getting just I the looking self-driving So the be and of elements great really what only improving software And or regarding FSD hardware. like Tesla and is work very full team to

moving really said -- head video as my really So, consumer it actually training. but extremely really progress fundamental as what's having it's on well to I to is then going very foundational and think apparent be with thing strong by seems rapid, software the the And seems strong seen be I like foundation.

of This all improvement labeling, is in of I mean terms like efficiency in arguably video So labeling efficiency. labeling with three a really, eight of cameras a terms in simultaneously. order magnitude in labeling

For great those so really this it's know about fundamental, who that. on that's progress extremely

retail Do earnings the Tesla retail their questions a better these doesn't us part -- questions understand own Kendall. to And you. analysts? analysts Thank than wealth sense question comes we take on last to from mostly Tesla even of investor have from larger answer vis on think seem investors to take calls Since and from SAY. make questions most personal you

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Okay.

if what being long-term better per expect institutional we you one yes, margin? Have from perspective? or let's Shanghai OpEx XX% previously impact learned of now different unit to lower is, do have question So gross about questions. might kind The an And on anything to of switch shareholder the CapEx you spoken number Giga capacity.

Sure, go ahead, Zach.

Model has factory Shanghai The quite items of the Yes. X COGS across been experience there. line all a remarkable cost for

We cost, COGS suppliers about between list have economic mean have being of made can lower, lot entire would but labor due a localization, the up capacity being that talked basically to down the from of cost states. opening not I run sense you material CapEx

also costs so supply corresponding flows shareholder import in on shows from has not costs. letter and well, logistics comparison California lower China. slide cascades that sorts into all our itself shipping the And X of operations savings in for we're layout and a logistics related chain the to over outbound And Model is in is the the the that there then as inbound here Localizing from a between savings California cars that our of and China terms and evident in that the Fremont layout facility factory the the facility. flow of into simplification pretty

to similar out our all of we're to internal selling of X important keep that the also of that add pretty in this you lower in are mind reduction Standard it's significant of car of Model perspective. if think the Fremont estimates in Fremont, out that of in Plus relative up Shanghai I cost cost so than is price China And a from the the of coming but

this expect and to I on the in same so to facility coming for I've the vehicle Shanghai previous earnings match it's margin of the calls, Fremont. said fair And think out margin

got Yes, efficiency the was affordable -- really just making continent on has big factory to high, world It X China, around doing is then what North Europe. of pretty the sense the then shipping gain making because they ship and there that cars happen, California on this where those the the different so waiting order Asia cars, regulatory are. complexity the goods, port a will Y, but sitting created -- it's especially and at a the very kind and And it's cars, finished halfway makes of Europe. silly transport, the America we're lot you've is during got cost, pretty past of got them and to lot at customers in you tariffs, in and Tesla in or customs, because in least through requirements cars fundamental by going or California

three America very got factory efficiency. types in a operating in different complex formula California, of China, North factory a Europe. we So -- a factory massive in in that built, a are it's our cars and Well, is improvement just being that having just alone factory

be think fully I may not this that Now appreciated.

working And on capital. also

absolutely. Yes,

it's According you here but OpEx XXXX. not see to,

accelerate question from the run capital investment the service. i.e. production The in why the in Supercharger recent investors and next is in Okay. raise given growth customer price, and share not te fill substantially Gigafactories, institutional now

quickly actually money it as spend as we we're spending Well, can sensibly.

So sensible value There expenditures is on answer spend is if see I there's money, any spending it. artificial way a anything good to for The money. is immediately. we're -- got it's back yes that what looks hold like no that

So -- generating are progress. efficiently cash. despite we but artificially then all positive we're that I not spending we're and And think still money limiting our

cash in you despite of So to expect money to growth light can… doesn't make this because that, generate it level. sense raise we Zach,

Yes, I completely with agree that.

grew company complexity. we've back of continue of that during the our it our Model and been unintentional part some journey ability underline think in held to scale accumulated And over I that of time. that of to with process the quickly period the on kind too launch X to XXXX and learnings too series much where is is we a in

back course to more over even reduction mean good think next with two you growth. the on kind then foundation the of looking launching, of laid now a as much that's company the I right consume have into we not of over bandwidth more two the contributes on will products to OpEx and so we products, year, have products and get And And of the vehicle and smarter that I I about now those stabilize that holding year. we factors. launching in we've year we're agree And that. what the the

we money sustainable. be that's smart about in So how to and spend we grow want way a

and we term to I so. mistakes made the So don't positive or a year half think we a

Yes, absolutely.

question answered Autopilot Okay. The already next regarding timelines. we've

should about we geographic profit can gross growth and OpEx grow OpEx control trends we versus question following how please about How OpEx be, would achieve and we the sustainability and think terms both did cost we workloads? So, in growth. talk vehicles as recent needs the of

I that that commented operating to portion Shanghai see in briefly We well. even stock-based of increase you the into expenses opening as remarks. on and to in Model program QX, it's growth, excluding attributed my double click the when also Y did from supporting this compensation. And an program QX

a look a be the so and start at place support our a we're number XXXX And now learned that focused growth company. not to as at very, of company the international processes then the a significantly -- to point least if need where we'll automating right the were is annually in the including that think I've the you automated. on pace on. think and up things tick that growth I where to we to job very mentioned are efficiency now continue slower we're at It journey. will lot just OpEx unwound from of I grow improve as point we've leverage, But than on And of footprint that the cost to XXXX the of operating which our to revenue we've

question will use they may And battery XXXX S XXXXX flat since is the stayed is of batteries. Model reason for batteries & XXXXX manufacturing Okay. S from use the be X When systems we X for still the that. have storage used main quarters, and of that sales capacity several investors last

Well, cell many inside XXXXX actually improved chemistry the Sure. the has the core times years. over

core really technology. the as a factor So, form opposed to it's

we're Model range of I the the XXX mile with yes, for think We're both it's, So happy where improvements vehicle. the the efficiency S, example. approaching the rapidly -- content, pretty for sell-in, energy in a

you Anything to to So be Model mile that? -- this add won't is is long XXX before want range. S it

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Actually been that for... way

the somewhere must be it of that. what Yes, XXXs in like

very let's you and phone. Thank much to the go Sherry on Q&A the

Instructions] with from Thank question Stanley. Adam Our [Operator first Jonas Morgan comes again. you,

Hi, everybody and actually were actually. the agree excellent questions retail

So Elon, the do Tesla you vehicles the user fitted see to terminals for future? are be constellation with potential near medium-term that compatible or StarLink with in

workplace in Well, year, it's aircraft years. low thing, latency bandwidth, for sort and would bandwidth, car, buy could a low something but is folks high the for certainly Yes, on for of antenna. tend think will which car. the about and really that or coming of need the just happen high If guess -- latency but there's I for at boats connectivity thing no that it you on you this bandwidth antenna it more I could medium homes the Pizza size plans throughout take kind you is than is ready and businesses and of that StarLink put being

network? assuming compatibility maybe StarLink Well, follow-up, into a a customer and et that the capability that How of experience antenna for integrated the we're could be to factor roof we or the down effectively with improve a form the example, from of point architecture the follow-up theoretically would the Tesla and cost cost just where get car how cetera? aerodynamically, --

-- like there's most a in in XG just just like be the if we that. in level cellular parts XX, to XX is countryside use have have to recommendation not cell actually would But think like use any And good antenna. the then cities and you the you gigabit world could out need you're need connectivity, of level probably or I Well, like or something you supply then megabits and antenna. don't with connectivity, like more wouldn't connect you fine connectivity StarLink much

I honest. good I'd is sure in guess But very sort I'm say yes, a be that relatively for of kind about thing. it and cities -- mean thinking that's I to there connectivity so much it So could outside not major be of of obtuse, making yes

Thank you.

question. Let's go to next the

you. Thank

Our Galves question next from with Wolfe Dan Research. comes

afternoon, thanks. Good

guidance and or of thumb could that there CapEx a per expenditures going I we the out unit model use kind year of some of of production you on thumb us is hoping So is business sort like as be can what give of this capacity some rule that? look to for long-term, rule capital to

tell sensible know spend our money don't said you, that don't can certainly fast like and CapEx think to money as we be what we I except want if say wanted spending going as we I earlier, I say to is -- year we're to ways. -- as to this in

it's So limited. definitely not artificially

that's spend of will in We capital, harder really. sure. deploy like part a CapEx year lot ways and the challenge number comes of It's the for actually -- a the efficient to money then this finding like sort deciding on

efficient CapEx more terms We we we'll Yes. always and the ways see per reduction [indiscernible] capacity. to teams find CapEx. challenge more to of And efficient always become I in become so think --

Absolutely.

[Indiscernible].

customer. customer technology there way has or the where is Yes, would we of are you would that so -- maybe some operating much and just makes wouldn't the necessarily of big system builds -- end difference our you that team our productivity, a like wouldn't -- internal as necessarily in it an company, effectively but end you big some a it's radically notice, that I necessarily financials, just as automation that you wouldn't it's of good. but Yes, them the applications if that core see core company but the it effect we you healthy you to there's Tesla kind these of on internal an think that the things notice efficiency that improving sort of have wouldn't, a notice

it. EBITDA mean now. of kind your is cash got I $X.X Maybe follow-up, annualizing Okay, at I billion right operating could flow,

level to guessing guys that for to a I XXX,XXX basis large? something feasible that a around years. that fund which that I mean year As to you building XXX,XXX capacity a be execute look could would of units of I'm the on a five capacity out kind of that's future, somewhere over is maybe CAGR XX% consistent

I think… mean, I

for more yes. XX%, We're having than

that I'm but CapEx Yes, I detail internal in done, -- mind to the loan have place not And faster. plans math in facility they're facility, back think is have think growth. question, I to that we sure keep do the your additional one on a first XX-K, mean, support our thing the on will not growth but just you've back rate, we the to I Shanghai that in are

as factory. And volumes cash So fund continue as to business more production our generates that additional that the well, then helps. on that increase us to allows

wouldn't necessarily it you view So it. as as described I limited

Yes, a our said few is few of think XX%, -- years said an -- in I [indiscernible] that at hold I think first yes, belief. I would average by estimate ago, that I saw to ago, years I my Tesla rate excess compound average of in I a on grow

you. Thank

the to go question. Let's next

next Our question from comes [indiscernible].

Good afternoon progress. and congratulations on the

mentioned Cybertruck, production remind on think making related sell to cost for question you how Can the many make. those thoughts First me will any of you and Cybertrucks? many as you you can as can you make you

I something or we make the Yes, far the don't those I just don't is comment in we could think four space years, on reasonably demand like three that. of, numbers except know, detailed more than

very volume one produced going be to end battery haven't that's you production we're thing just more from because electric you improve you if battery actually fundamental is another focused up production to increasing shifting product really then capacity on because the vehicles. and So capacity, unit don't

the available Semi have say of use of cars. So would for production pure example got why the we accelerated Tesla we've that's mean the Model really -- battery Semi a because of not of accelerating and cells or making does production X unless it lot lot then then Tesla necessarily and a Model Y like cells of part reason

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going kind this Day to we're like said of we explain are. to kind that a do So about our what just Battery more of plans

end to of probably the quarter of it's kind make quarter, of as after that think to quarter. to intense was because it think going I last it's end going do I an be sense this

do the in get to, or of we how a couple timeframe, a of tentatively you gigawatt don't through do Battery Day something. So kind sort here thousand the and year know go a are, will of I challenges from hours what April

also Battery look your comments that that is II only give vehicle, you forward density us other vehicle that can you prepared high Part that Elon, for announced up Great. a products may mentioned project? Day. any Master Plan I'll about regarding come light in passenger to and the not

we just we but got do road. add improve the improve number vehicles Yes, what going we complexity, capacity total the battery that not of back said otherwise the to I to on

like the that occupants and generally So to themselves the And car, vehicle sure what some do it's we X.X on cars sensible need -- sort make our batteries goes it in of there. autonomy got is pointing we really true maybe mean their see by just think people out a by sure of some to maybe, go drive already with maybe but I to riding mostly will are do we of cars probably, I'm but and our I it arc X.X fleet. yes at some like make not the sort even high-capacity that think invest, I average, in to point number if average comments that when we whether prefer I that

those people like just real solve makes I a that's sort to said us or it sense to we for well, like the that like battery got of do to but balance So, battery production truck cannot probably, to we're -- levels today, even of that problem. or sort minivan scale something crazy going

Thank you.

go to question next please. the Let's

Evercore Our next with question John [ph] Sagar ISI. from comes

Model Model to other X. features two taking with Are on And about going the how the to that, want beyond grew as my there differences I the Y talk and talked and of differentiate S the Model sort past sales X follow between thumb, the to the for then rule cargo just call. you've the XX% size. around models. that Thanks introduction of are a about in Model of

up to essentially align Model the setting Y? your planning you expand with thesis are will production introduction of So that X on facilities Model alongside that sales

you we're but that at come and X and I'd would worried introduction is sales Model could X look because of would X going like sales increase. course know, X, to quite the sales Model not true Model it happen what's S the increased they of You actually actually -- that Sedan with, in, the prefer Model we're said drop S okay, sure there

use possible and hard always from with make -- us volume part get in at So for are worried -- of what curve is that difficult those the like exponential S-curve production. And Model as because it's reach always it pretty what about of production to S Production predict. we're Y. herky-jerky hard S intermediate -- sure soon can the it's be S-curve. it's but the And portion it's worried not much predict that of ramp the we we is as pretty like the production you the too demand, going to kind production, it's beginning about to and like a flow to predict follows curve or going very question end, of

involves amount that's and So issues to work arise. that hard and just it a fast reacting massive of

So, going a just make it's to we're sure can go I best have Y Model with product. as and think great we

does they some on Model they October impressed a are be there see. but they the not things think, our it, I I think think call. do, do things will some And the that of teardown when when differentiate people analyst about I of so will -- Y,

next just X Y And the and to to to I Berlin in on think context that, have here we're between produced and Shanghai Model in to is to keep XX working XX launch But important Fremont all and Y location. months. over the it's what locally add

Yes.

may as Model ups these is get downs having as journey And so, factories to Y and of expanding X the is various Model we continents. the expanding, be products major on

Yes.

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thank right, All guys.

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go Let's please. question the next to

you. Thank

comes from Colin next Our Oppenheimer. with question Rusch

the should for Can be the gross as how profit a price so thinking you mission a we of for frame operating per-vehicle to Is about light really profit Thanks as reduction, basis EV target or adoption. to increase guys. speak pricing well in the there ourselves? strategy China that should or that much we on

cash fast Yes, crazy the possible, and I while mean balance. Zach, we're and trying affordable growing while -- to as make and as cars having little as being good cash our bit company reasonable accumulating at maintaining profitable you like possible, least add? to a still flow free want anything as the

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or that people certain buy in places. package and do full not So, only do self-driving it or the worldwide buy

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Yes.

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to go next question please. the Let's

Emmanuel with Rosner from Bank. next question comes Our Deutsche

Hi, good evening, everybody.

through price. would maybe then have see price So you like the takes, selling evolve, that have how of Can metric puts in sort your and in Model you stable probably around had and being thereabouts slide which or pricing walk deck, Y the the a at China higher comments Model some average you you XXXX. initial the obviously through lower of

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question next the to please. go Let's

you. Thank

Our next Suisse. with Credit Dan question from Levy comes

Thank evening. question. you taking for good Hi, the

on on want question raise. Just the to follow-up capital

a capital to capital this pay it others, all-time this of that and especially for either is debt pursue wouldn't you down the cheaper to real could in sense to bolt-ons competitive or So advantage given capabilities accelerate acquisitions and cost technology? raise why make battery help

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should Sounds acquire? great, whom we

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anyone that acquire. We're to of aware want we'd not

pay down? debt And

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thank you. Okay,

please. Let's go to the question next

Thank you.

next comes Research. with New Pierre Our question Ferragu Street from

north If I of end for capacity wanted of battery I year, come have -- in Elon, taking capacity. so my look mid production add of the batteries. gigawatt this that to probably cars, the at if soft storage position units back question. should you you energy Thank you XX -- on means

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let's the to Okay. last please. And go question,

Thank you.

Joseph question JMP from Osha Securities. last come will Our with

cell dry have for a Further here Thanks. to the the as just wondering or plans the conversation you? around on acquired can are the Maxwell what if technology technology, what you cell comment that you capacitor or

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have that going I to a be think very to story we present. compelling it's

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ultracap of part that plan? is kind -- technology of of Maxwell part the

piece puzzle, yes. an the It's of important

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shall have you. blogs I to more. Thank read the

right. All

You're welcome.

questions good we speak you in will much months. to three everyone Thank very you Thank all you. another your for for of and

Thank you.

you. Thank

you for concludes Ladies and gentlemen, call. conference Thank participation. this your today's

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